MELBOURNE, Dec 10 (Reuters) - Australia's Australand
Property Group said it has received an unsolicited,
highly conditional offer from property trust GPT Group
to buy parts of its business, including its A$2.3 billion ($2.4
billion) investment property portfolio.

Australand, a diversified property group 59 percent owned by
Singapore-based property group CapitaLand Ltd, said on
Monday it had not formed a view on the proposal, which is also
targetting its smaller commercial and industrial business.

Its shares rose 9 percent on the news.

No price for the offer was given. Australand described it as
incomplete and subject to a number of factors including due
diligence.

In a separate statement, GPT said it wanted to begin talks
with Australand over its cash offer.

"Australand is attractive because industrial (property) is a
high-yielding asset class," said Sholto Machonochile, analyst at
CLSA.

"They (GPT) probably don't want exposure to residential,
which is why they've offered for asset purchase rather than
company purchase," he added.

Australand's investment property division had a total
portfolio value of A$2.3 billion with 70 properties at June 30,
according to the company's website.

Under the proposal, Australand would retain the residential
business and remain listed on the Australian Stock Exchange.

Australand's shares rose as much as 9.6 percent to A$3.34,
the biggest one-day rise since June 2009. It last traded up 6
percent for a market capitalisation of A$1.84 billion.

Analysts said GPT may have to go above the book value to get
the deal done. Its shares gained 0.6 percent.

"For GPT, it would increase their passively managed property
and slightly decrease the development portfolio, so that is
within their strategy," said Bell Potter Securities head of
research Peter Quinton.

Ratings agency Standard & Poor's said its ratings on GPT
would not be affected by the offer, saying a deal was consistent
with GPT's plan to increase the weighting of office and
industrial assets in its portfolio, and reduce retail.

Analysts at Credit Suisse said Australand's investment
property portfolio contribubted 61 percent of fiscal 2012
earnings. Its residential business accounted for 32 percent of
earnings and its commercial and industrial business 7 percent.